Pros Cons of Property Casualty and Health Life?

ChillyWilly72 · 03-20-2009, 01:35 PM

First thing is I am in Sacramento California and am completely new to this and have never had a commission only job. I currently owe nothing and can make it on ~$1000 a month which I already have coming in from other sources, but will need to be making within 4-6 months. I plan on taking the state test by mid April.

I am trying to decide on P&C (home/biz focus) or HNL (health focus) but I really know little about either. I was originally focused on HNL but am now reconsidering because of being told that commish advances were rare (or non-existent) and no exclusions here in CA making HNL rough. What pros and cons do you know of? Is one or the other facing dire times in this crappy economy?

I feel real good about this, kind of like asking girls out as a kid once I saw how if I kept asking I would have success. I just get excited by the prospect of asking out one and then another and another. I don't know maybe I'm just weird but I really like the idea of work based on work ethic. The thing I lack is direction.

Also, from my understanding of what IHIAA offers, they give an indy the training to be effective and knowledgeable advisers, who provides this type of service for P&C? Also, is there anyone out here in Sacramento that would be willing to meet for coffee to shoot the breeze and offer advice?

Thanks

Jerry

eric rose · 03-20-2009, 02:41 PM

This really depends on what and how you would like to work. Do you have startup money, and how do you plan on conducting business?

P & C is very difficult on your own, and to my knowledge there is no ihiaa equivalent for p&c. Getting contracts and maintaining an office will be very different depending on which path you take. WIll you be selling over the phone, belly to belly, or both? Are you looking to be independent or captive?

Being so new I would definitely look for someone to learn from.
I am an IHIAA member and I feel that it is a GREAT value for the price, but I don't think it is the same as having someone local to teach you the ropes. I think membership will drastically reduce your learning curve, but it's not the same as having someone with a financial interest in your personal success. Just my opinion.

ChillyWilly72 · 03-20-2009, 04:00 PM

I would prefer to become indy but don't really think that this will be a possibility, because of my lack of experience as well as start up money. As far as how, I have envisioned phone my nuts off, make face to face meeting as well as go door to door. I am not afraid of any of it, not to say that I do not have jitters but that is because it will be somehthing new and exciting not because I don't think I can do it. I adapt very well and as my comfort level increases my abilities skyrocket, perhaps this will be different but I will have to face and overcome that when it happens.

I also plan to hit up every agency I can find, but I need to make a commitment to P&C or HNL and just was hoping for a little more insight before I jump. No matter what happens I can always redirect my energy and get new licencure but I would rather not have to change direction midstream of startup. Eventually I hope to partner with a few others and create a true one stop shop everything insurance plus investments firm but that is in the future and as it has been suggested over and over in this forum I want to focus on one area for now.

How has start up been for you Eric? What are some of the tuffest challenges you have faced and how did you overcome them?

Jerry

SoCalBroker · 03-20-2009, 10:16 PM

Start with P&C license, then get L&H - and do both. Focus on P&c and it will/can drive health and group opportunities.

Dont think I know of a small group or individual health specialist that wouldnt want to partner with a P&C agent to cross sell their P&C book for life and health.

Im definitely biased towards P&C - I think there are more options and contact points for sales with prospects through the P&C.

Car / Home / Umbrella / Boat / Business / Work Comp / Commercial Autos

Just my $.02

eric rose · 03-21-2009, 07:54 PM

My biggest challenge with P & C was the service work. In a very short period of time I needed to hire help so that I could keep selling and not spend all of my time handling service requests. You really need a fair amount of start up money to write p & c on your own. All companies, and frankly your customers, will expect an office. Not exactly the same with Life & Health.
Met is the only captive company that I know of that will let a scratch agent open a p & c agency as an employee with little or no money invested. I'm not sure that I recommend that opportunity, but it may be an option.
Have you thought about working for an independent agent and learning the business? Get both licenses neither test is really difficult. You can pick which direction to take based on what you like more. It also allows you to partner with more agents and participate in the commission.

SCLady · 03-21-2009, 09:18 PM

Originally Posted by eric rose

My biggest challenge with P & C was the service work. In a very short period of time I needed to hire help so that I could keep selling and not spend all of my time handling service requests. You really need a fair amount of start up money to write p & c on your own. All companies, and frankly your customers, will expect an office.

Most insurance companies will service your clients for you. So, instead of telling your customer to call you, tell them to call the insurance company directly.

Patriot · 03-22-2009, 02:30 AM

Do you want to insure people (life/health) or their stuff (p&c)?

My two cents.

djs · 03-22-2009, 03:11 PM

Originally Posted by SCLady

Most insurance companies will service your clients for you. So, instead of telling your customer to call you, tell them to call the insurance company directly.

I'm guessing here, but I take it you don't sell P&C. In the P&C world, you never want your client to call someone else, you want them to call you.

In health, absolutely, call the carrier if you want. I still prefer they call me, but the carrier can deal with it.

Everytime a client calls, it adds value to you, it adds an opportunity to get to know the client a bit, it opens the door for additional opportunity and cross selling.

Why would I turn any of that down?

Dan

SoCalBroker · 03-22-2009, 03:29 PM

P&c carriers have service centers you can Hot Transfer to.

Client calls you and discusses their issues - and you say, OK we can take care of that - let me trx you to MY Cust Service Dept.... Hold on 1 second. Hold / Transfer call and they answer as Your agency name - handle the change endorsement or claim issue and do all the follow through.

Im not a fan - but for a start up - it could work fine. Its not perfect but nothing is.

YMMV ...